This week on the Community Broadband Bits Podcast Christopher talks with John Bowcut, Director of Information Systems and Network Director for Spanish Fork Community Network in Spanish Fork, Utah. As John approaches the end of his career he reflects on the network's founding, its success over the last two decades, and the missed opportunities which stemmed from a 2001 law limiting municipal networks. 

That Spanish Fork has achieved an impressive level of success is revealed by the numbers. In 2013, the utility had already paid off the majority of its debt and enjoyed a take-rate of 60% of the community of 35,000. In 2015, it began a fiber buildout to replace the hybrid fiber-coax neighborhood by neighborhood. By refusing to take on any new debt and focusing on neighborhoods with the most interest, the network was able to spend about a million dollars a year over the last five years, and is close to completion. Today SFCN enjoys a take-rate of 78% on its Internet service in the city of 40,000, with some neighborhoods subscribing at a rate of almost 100%. It continues to save Spanish Fork over $3 million a year, adding to the tens of millions it has already saved the community.

To what does John attribute their success? Community. Finding qualified, passionate people to build a network dedicated to the needs of people and businesses in the surrounding area. He highlights the utility's customer service and responsiveness to its users needs. Christopher and John consider the success of SFCN in the context of the the long-term consequences of HB 149, which in 2001 installed signficant new hurdles by preventing new municipal from providing services directly to residents and businesses like SFCN does. Finally, Christopher and John talk the importance of marketing, and using it as a way of forging community connections and creating messaging that fosters dialogue. 

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Contrary to the common narrative of poor connectivity and dim prospects for rural America, the vast majority of rural North Dakotans have gigabit fiber Internet access available to them today.

Our case study, How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota, explains how this came to be, highlighting how 15 telephone cooperatives and local companies came together to invest in their rural communities and build fiber broadband networks across the state. In the 1990s, those companies united to purchase 68 rural telephone exchanges in North Dakota from regional provider US West (now CenturyLink). Then, they leveraged federal broadband funds to deploy some of the most extensive fiber networks in the country, turning North Dakota into the rural broadband oasis that it is today.

Download the case study, How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota [pdf].

A Model for Better Rural Connectivity

The case study explores North Dakota's exceptional rural connectivity through several maps and graphs and offers the following takeaways:

• 15 local telephone companies and cooperatives took advantage of regional monopoly US West's failure to view its rural properties as profitable and acquired 68 of the provider's exchanges in rural North Dakota, creating the foundation for fiber networks that would one day crisscross the state.
• More than three quarters of rural North Dakotans have access to fiber broadband today, compared to only 20 percent of rural residents nationally. Over 80 percent of North Dakota's expanse is covered by fiber networks.
• National telecom monopolies refuse to substantially upgrade their rural networks even though they receive billions in subsidies, while local co-ops and companies continue to invest in their communities ⁠— proving the solutions for better rural connectivity already exist.

Read How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota [pdf].

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There’s a belief out there that households don’t really want or need more than a basic broadband connection, much less gigabit connectivity. This mistaken impression especially affects rural areas, where observers point out that a resident may have more fingers on their hand than Megabits per second (Mbps) on their current Internet connection, so surely they’ll be satisfied with a bump up to broadband speeds of 25 or 50 Mbps.

However, in our experience at MuniNetworks.org, demand for high-speed connectivity is actually quite robust in rural areas where the infrastructure exists. We’ve heard from rural cooperatives that many of their fiber network subscribers opt for higher speed tiers and that gigabit take rates near 30 percent in some instances. This suggests rural areas are much more likely than more urban areas to opt for tiers above the lowest cost option.

Even if the majority of rural subscribers don’t need the very highest broadband speeds, it’s important to note that the demand is there and will certainly continue to grow. As federal and state governments invest in rural broadband deployment, they must ensure that the networks they’re subsidizing can meet current and future needs.

Co-ops Feed Need for Speed

Back in January, Telecompetitor reported that Curtis Wynn, CEO of Roanoke Electric Cooperative in North Carolina, shared on a press call that two thirds of the co-op’s broadband subscribers selected a speed tier above the lowest and cheapest option of 50 Mbps. This isn’t because the co-op’s members have extra money to burn. “We’re one of the poorest areas of the nation. We have a lot of low-income individuals who are our members,” Wynn told a reporter in 2019.

Last month, we spoke with representatives from another electric cooperative, Oklahoma Electric Cooperative (OEC), for episode 398 of the Community Broadband Bits podcast. They told us that many of their members also choose to subscribe to above-baseline speeds. The co-op only...

Rural areas are taking steps to improve their connectivity and are developing high-quality Internet access on par with the best services in urban centers. When smaller communities band together, they increase their chances of developing fast, affordable, reliable community networks that serve a larger swath of people. This week, Christopher speaks with Travis Thies, General Manager of one of those networks established to serve an eight-town region, Southwest Minnesota Broadband Services (SMBS).

The network started with funding from the American Recovery and Reinvestment Act (ARRA) and has continued to make improvements and upgrades to serve folks who were once stuck with antiquated Internet access. Before SMBS, several communities had been told by the incumbent Internet access provider that the best they could ever expect was dial-up service. Now, subscribers can sign-up for gigabit connections. With intelligent partnerships, they're also able to provide service to farms and rural premises beyond town limits.

Travis and Christopher discuss the history of the project, the challenges that community leaders and network officials have faced and overcome, and how the area's demographics have helped them determine the best ways to serve subscribers. They also discuss their partnership with a local fixed wireless Internet service provider and the how better connectivity has attracted people and businesses to the region.

This show is 24 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed...